In Recording an Accrual Adjustment to Account for Revenues Earned

question 150

Multiple Choice

In recording an accrual adjustment to account for revenues earned but not yet collected:

• A)an asset is decreased since cash is being paid at the time of the adjustment.
• B)the asset recorded when cash was paid is decreased as the revenue is earned.
• C)the asset recorded when cash was paid is increased as the revenue is earned.
• D)an asset is increased since cash will be collected at a later date.

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Definitions:

Randomization Technique

A method used in experiments to randomly assign subjects to different groups to reduce bias and ensure the groups are comparable.

Artificial Situation

An environment or circumstance that has been created or manipulated by external forces rather than occurring naturally.

Experiment

A research method in which conditions are controlled and manipulated to test hypotheses and observe the outcomes in a systematic way.

Hypothesized Causes

Proposed explanations or factors that are believed to lead to a particular condition or event, often requiring further investigation or evidence.